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RE: [Q] What is the purpose of "saving" SBD?

in #steemit7 years ago

Steemit is mostly HODL culture...the majority of STEEM has been powered up in to STEEM POWER because that is what determines the value of our upvote. Also you receive more STEEM POWER as a reward from Proof of Stake mining. STEEM POWER can not be transferred only STEEM is liquid... In order to get STEEM POWER back to STEEM you have to power it down, the whole process takes 3 months to get all your STEEM POWER back to STEEM. This greatly reduces the ability for people to panic sell all at once. This also lowers the amount of liquid STEEM, making it much more valuable.

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I guess that's what makes Steem so beneficial compared to other cryptos, as the system stops the pumps, although eventually could lead to a bear market if Steem managed to upset people for 3 months straight. Its just interesting how dividing the use-cases of the platform into different currencies can impact how valuable Steem, Steem Power and SBD are.